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adjustment amount of money arithmetical average bank deposits bank notes bank reserves base bimetallism borrowers capital cash causes cent circulation of money coin commodities consumption contracts correlative countries decrease deposit currency dollars double effect equal equation of exchange evidently expended expenditure export expressed fact factors fall figures formula for Pi given gold countries gold standard gold-exchange greenbacks Gresham's Law increase index number Irving Fisher Latin Union less level of prices loans magnitudes means measured metal monetary money in circulation monometallism number of prices paper money payments period power of money price level price ratios production purchasing power quantity of money quantity theory rate of interest rate of turnover relation relative remain represented reserve result rise of prices seigniorage simple statistics sugar tends tion transactions United vary velocity of circulation volume of trade wealth Wesley Clair Mitchell York
Page 60 - Deposit currency (M') expands relatively to money (M). (5) Prices continue to rise, that is, phenomenon No. 1 is repeated. Then No. 2 is repeated, and so on.
Page 72 - For when prices are likely to rise, people rush to borrow money and buy goods, and thus help prices to rise ; business is inflated, it is managed recklessly and wastefully ; those working on borrowed capital pay back less real value than they borrowed, and enrich themselves at the expense of the community.
Page 56 - ... in the last chapter. These permanent or ultimate effects follow after a new equilibrium is established, — if, indeed, such a condition as equilibrium may be said ever to be established.
Page 41 - To put it crudely, / banking is a device for coining into dollars land, stoves, / / and other wealth not otherwise generally exchangeable.
Page 157 - We may now restate, then, in what causal sense the quantity theory is true. It is true in the sense that one of the normal effects of an increase in the quantity of money is an exactly proportional increase in the general level of prices.
Page 177 - ... to be laid on the fact that "demand at a price" and "supply at a price" are still incomplete designations, and that to give them meaning it is necessary to add "at a price level." The demand for sugar is not only relative to the price of sugar, but also to the general level of other things. . . . The price of sugar in dollars depends partly on sugar and partly on dollars, that is, on what dollars will buy- that is, on the price level. ... We have more need to study the price level preparatory...
Page 149 - THE chief purpose of the foregoing chapters is to set forth the causes determining the purchasing power of money. This purchasing power has been studied as the effect of five, and only five, groups of causes. The five groups are money, deposits, their velocities of circulation, and the volume of trade. These and their effects, prices, we saw to be connected by an equation called the equation of exchange, M V+ M'V = 2pQ.
Page 50 - This would be true if circulating credit were independent of money. But the fact is that the quantity of circulating credit, M', tends to hold a definite relation to M , the quantity of money in circulation; that is, deposits are normally a more or less definite multiple of money.
Page 167 - It seems to be a fact that, at a given price level, the greater a man's expenditures the more rapid his turnover; that is, the rich have a higher rate of turnover than the poor. They spend money faster, not only absolutely but relatively to the money they keep on hand. . . . We may therefore infer that, if a nation grows richer per capita, the velocity of circulation of money will increase. This proposition of course, has no reference to nominal increase of expenditure" (The Purchasing Power of Money...